RTTNews - US stocks were looking to kick off June on a high note Monday morning in New York after the Obama administration said it will provide $30 billion in financing to troubled automaker General Motors, which will reorganize through a bankruptcy filing.
With no surprises expected in GM's bankruptcy, stock futures soared across the board. The Dow Futures were up 134 points, the NASDAQ Futures were up 13 points, and the S&P Futures were up 14 points.
Reports indicated that GM will file for bankruptcy at 8 am ET. The Obama administration said Sunday that it has deemed GM's reorganization plan viable, and will provide the company $30.1 billion in what is called debtor-in-possession financing - money the company can use while it moves through the bankruptcy process.
GM is expected to be removed from the Dow, perhaps opening the door for Ford (F) to take its place. Goldman Sachs (GS) and Apple (AAPL) are among other companies poised to replace GM.
On Friday, a late-session rally helped the major averages to finish the month of May on a high note, further building on recent gains. The Dow closed up 96.53 points or 1.2 percent at 8500.33, the Nasdaq closed up 22.54 points or 1.3 percent at 1774.33, and the S&P 500 finished up 12.31 points or 1.4 percent at 919.14.
Monday is shaping up to be a busy morning, with GM news potentially overshadowing the release of pivotal personal income and spending data. The markets will be looking for evidence that renewed consumer confidence has translated to consumer spending.
Economists estimate the report, which is due out at 8:30 AM ET, to show that personal income fell 0.2% and the personal spending also declined 0.2% in the month. On Friday, traders digested a revised May consumer sentiment report from Reuters and the University of Michigan that showed its best results in eight months.
All of this week's economic data will lead up to Friday's key monthly jobs report. Additionally, Altera (ALTR), VeriFone (PAY), Collective Brands (PSS), Ciena (CIEN), and Guess (GES) are among the companies due to release their quarterly results this week.
The price of oil continued its levitation act Monday morning, rising more than a $1 to $68 a barrel. Resource stocks will again be in play, as commodities price firm up on US dollar weakness. The greenback has plunged of late, hitting multi-month lows against a basket of major currencies.
Asian stocks rallied overnight, with the major European averages were uniformly higher.
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